Sunday, April 1, 2012

What are the problems with Increased Demand?

The increased demand is causing several unethical bsuiness practices by established players that are meant to keep out new players from entering the business to reduce competition and retain profits. These established players have formed sydicates/cartels and are cheating the temples from getting the full price. When new players show up at the auctions, they bid up the price to shut out the small players from bidding. In some cases the cartel members are using threats and payoffs (combination of carrot and stick approach) to discourage the new entrants.

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